NYSE Arca, a subsidiary of the NYSE Group, has filed to launch a spot Cardano ETF for Grayscale. The filing was submitted to the U.S. Securities and Exchange Commission (SEC) on February 10.
Application for Spot Cardano ETF
NYSE Arca proposed to list and trade shares of a new Grayscale Cardano Trust. If approved by the SEC, it would be Grayscale's first standalone investment product for Cardano (ADA).
Details of NYSE Arca's Proposal
According to the filing, Coinbase Custody Trust Company would serve as custodian of the assets and BNY Mellon Asset Servicing as administrator. NYSE Arca mentioned that the rule change will facilitate the listing and trading of a new type of exchange-traded product based on ADA, increasing competition in the market.
Other Similar Applications
Grayscale's request for a Cardano ETF comes as several similar proposals have been made by the asset manager in recent weeks. On February 6, the SEC acknowledged Grayscale's amended filing to convert its existing Solana trust into a spot Solana ETF (SOL). Previously, NYSE Arca lodged a filing to convert Grayscale's XRP trust into a spot ETF.
With the introduction of more cryptocurrency ETFs, competition among asset managers to offer investors new products intensifies. This marks a step towards the integration of cryptocurrencies into traditional financial structures.
